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Best Buy is aiming for $ 50 billion in revenue by the year 2025, the company announced Wednesday morning before a meeting with investors in New York.
The company also announced in a press release that it plans to cut costs by an additional $ 1 billion over the next five years, while its operating income increased by 5% over this period.
For the fiscal year 2020, Best Buy still expects revenues to be in the range of $ 43.1 billion to $ 43.6 billion.
The electronics retailer had previously requested that fiscal year 2020 earnings per share be between $ 5.60 and $ 5.75, excluding special items. Sales in stores open at least one year are expected to increase from 0.7% to 1.7%.
Charlie O 'Shea, an analyst at Moody's Retail, has called Best Buy's new financial goals "very achievable" and said they aligned with the "long-standing vision" from the company that Best Buy will remain one of the most successful retailers in the US ".
"The main franchise is built on a solid foundation, driven by … growing supplier relationships, a retail experience that clearly impacts consumers, and a smart expansion strategy in segments such as retailers." health care, "said O. Shea. in a statement sent by email. "In addition, Best Buy's conservative financial policy gives it the opportunity to invest if necessary to execute this growth plan."
Analysts of the Best Buy project will earn on average between $ 5.60 and $ 5.86 per share during the year, for a turnover of $ 43.39 billion, according to Refinitiv.
For the third quarter and the current quarter, analysts announce earnings per share of $ 1.03 for a turnover of $ 9.7 billion.
Executive Director Corie Barry said in an interview with CNBC's Courtney Reagan prior to the investor meeting that Best Buy planned to "double" its growth strategy, despite the sector's "turmoil". Barry just took office as CEO in June, making her the first woman to run the Minnesota business and, at age 44, the youngest woman to head the Fortune 100 group.
Last month, Best Buy's earnings exceeded analysts' expectations in the second quarter, but sales were disappointing. The company has invested in its supply chain to accelerate deliveries in anticipation of the holiday season, in addition to a series of recent investments in healthcare, which hopefully it will distinguish it from other competitors in the electronics sector.
Best Buy has also focused on creating partnerships with technology giants, including Amazon.
Best Buy shares, at market close on Tuesday, jumped more than 27% this year. In pre-trade trading Wednesday, the stock was up less than 1%.
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